The raw data figures do not show a pretty picture. The new highs stink. The new lows are increasing. The A/D line can't seem to go anywhere but down. However, on a momentum basis, the market is still oversold. This tells us that the market is not done trying to rally. It should have several more rally attempts over the next week or so.
If these rallies continue to show poor statistics, the market will come down again when the momentum turns.
New Highs and New Lows
Cumulative Advance/Decline Line
Helene Meisler, based in Singapore, writes a technical analysis column on the U.S. equity markets on Tuesdays and Fridays, and updates her charts daily on TheStreet.com. Meisler trained at several Wall Street firms, including Goldman Sachs and Cowen, and has worked with the equity trading department at Cargill. At time of publication, she held no positions in the stocks mentioned in this column, although holdings can change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. She appreciates your feedback at